360Globalnet provides a claims platform to allow insurers to offer a digital customer experience.
Founded in 2010, 360Globalnet has received total funding of $35m from investors including DXC Technology and high-profile industry figures such as Keith Morris (Sabre), John O’Roarke and other former members of the LV= management team, and Chris McKee (formerly of Ingenie and Direct Line Group).
360Globalnet’s platform can be integrated into legacy systems or be run stand-alone (and can be used as a core claims system itself). Functionality includes a self-serve capability for all claim participants, and the ability to send and receive videos, images, text and documents. The platform is totally configurable by non-technical users in plain English.
The revenue model is either transactional or subscription. The company expects to report revenue of £8m this year (a 60% increase on 2017) and to be profitable from 2019. It is forecasting a doubling of revenue each year for the next three years.
The majority of 360Globalnet’s customers are based outside the UK, including Allianz with whom 360Globalnet has a global partnership.
Insurers use the system for both personal and commercial lines. Some insurers have used the platform to manage claims across their entire portfolio. In one recent case, three US insurers deployed an online claims service in three days in the wake of hurricane Irma and were then able to process 20,000 claims in a week. 360Globalnet also built an online claims solution in 24 hours for a motor manufacturer faced with the recall of half a million vehicles.
Next year 360Globalnet is investing in developing augmented reality technology including 3D models from imagery.
The company has just over 60 FTEs and is recruiting a sales director who is likely to be based in the US. It has offices in Edinburgh (IT development), St Albans, Surrey and Castle Donnington in the UK, in addition to Chicago and Melbourne.
An interesting twist on the classic model is that the company has a network of 250 ‘gig economy’ contractors who help with activities such as ‘on-demand’ loss inspections. It also provides claims handling services based on its own technology including subsidence, drainage repair and control of complex property claims.
THE OXBOW PARTNERS VIEW
There are numerous ClaimsTech businesses in the market and all have slightly different propositions. The challenge for corporates is a) understanding what they all do and b) how they fit together.
On (a), understanding the landscape is becoming increasingly difficult as the number of companies increases. It is virtually impossible for a casual observer to distinguish between the stars and the dogs (there are plenty of both). Companies need a scouting operation appropriate to their size and focus, or ‘honeypot’ reputation, to find and attract good partners. Examples of effective solutions in the market are:
- An innovation team with a clear purpose and defined criteria for partners they want to work with (e.g. XL Accelerate)
- A partnership with an accelerator that gives you access to the (not just insurance) tech world (e.g. Aviva’s partnership with Founders Factory, an accelerator set up by Brent Hoberman, founder of Lastminute.com)
- Pitch-oriented conferences where insurers can quickly get an overview of the market (e.g. InsureTech Connect in Las Vegas)
- Investments in third party investment funds (e.g. Eos Venture Partners)
A high profile tech entrepreneur on the Board would also be a solution – but we can’t think of an example. Answers on a digital postcard please so we can enhance this blog post!
Working out how ClaimsTechs fit together (b), is particularly important as a mindset-shift is required: building technology is no longer a simple vendor selection process, but an ‘ecosystem creation’ process whereby different components are bolted together. There are complicated tradeoffs: should you use eviid, a specialist video capture company, or should you use 360Globalnet’s built-in video capture capabilities? Beyond the standard InsurTech selection challenges, it is difficult to ensure that components can be massaged into a consistent end-to-end customer experience.
As ClaimsTechs are finding their place in this ecosystem, 360Globalnet is becoming a business that owns data capture and the interface between handler and customer. With You In Five – the ‘gig economy’ loss inspection service mentioned above – is a nice illustration of how they are innovating here. There’s a description of how it works on the NIG website (NIG is Direct Line Group’s commercial insurer). We like the thinking here, and as it happens we wrote a blog post called ‘Uber for Claims – how the ‘gig economy’ could disrupt the loss adjusting sector’ in Post Magazine in 2016 talking about a similar idea.
Other InsurTech businesses that fit into the claims ecosystem are:
- RightIndem – which focuses on claims analytics and the automation of the claims journey (Bitesize)
- FraudTech companies, discussed in our recent Bitesize on getmeIns
Oxbow Partners has executed several claims strategy and transformation projects. We have helped insurers and brokers look at traditional issues such as target operating model and ‘modern’ opportunities such as designing digital customer experiences, including vendor selection of InsurTech suppliers. Our internal team of consultants helps you run a robust process and works with independent and client experts to ensure we deliver a business outcome, not just PowerPoint. Get in touch if you’d like to know more.